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AGREEMENT REACHED FOR SALE OF STOCK OF GENERAL PARTNER OF ENRON LIQUIDS PIPELINE, L.P.; KINDER TO BECOME A MAJOR SHAREHOLD AND CEO OF ACQUIRING ENTITIY
FOR IMMEDIATE RELEASE: Wednesday, January 8, 1997
HOUSTON-- KC Liquids Holding Corporation and Enron Corp. (Enron) today jointly announced the signing of a definitive agreement calling for the sale by Enron of all the stock of Enron Liquids Pipeline Company (ELPC) to KC Liquids Holding for approximately $40 million in cash and the assumption of certain other obligations.
ELPC, an indirect wholly owned subsidiary of Enron, is the general partner and 15 percent owner and operator of Enron Liquids Pipeline, L.P., a master limited partnership traded on the New York Stock Exchange under the ticker symbol "ENP."
KC Liquids Holding Corporation will be renamed Kinder Morgan, Inc. following the recent agreement of Richard D. Kinder to become a major shareholder, chairman and chief executive officer. Kinder was formerly president and chief operating officer of Enron.
ìI am delighted to be joining my old friend and business colleague, Bill Morgan, who founded the company and originated this acquisition,î said Kinder. ìBill has over twenty years of experience in the energy industry and will remain a major shareholder and serve as vice chairman of the company.î
ìWe intend to make this entity a growth vehicle by expanding its present assets and by making acquisitions utilizing the unique financial advantages of the MLP structure. Our strategy should lead to substantially increased cash distributions and unitholder value,î said Kinder.
ìIn August, we announced Enronís plans to consider the sale of its liquids assets, including the stock of its related ELPC subsidiary, but only if the bids were acceptable and only if the sale of the general partner stock could be completed without adverse effect on the ENP partnership and its unitholders,î said Stanley C. Horton, ELPC chairman. ìWe feel those goals have been accomplished with the sale of ELPC stock to Kinder Morgan, which will keep intact most of the management team.î
The partnership has paid its quarterly distribution from its inception in 1992 without support from Enron Corp. Kinder Morgan has arranged a letter of credit guaranteeing the minimum quarterly distributions required through the balance of Enronís support period which ends September 30, 1997.
The fourth quarterly 1996 cash distribution of $0.63 per Common Unit is payable on February 14, 1997, to holders of said units at the close of business on January 31, 1997. The indicated annual rate is $2.52 per unit.
Enron Liquids Pipeline, L.P., which has assets in excess of $300 million, owns and operates two natural gas liquids (NGL) pipeline systems and one carbon dioxide (CO2) pipeline system. The Partnership also owns and operates a rail-to-barge coal transfer terminal and a natural gas processing facility and holds an indirect interest in an NGL fractionator.
This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the parties believe that their expectations are based on reasonable assumptions, they can give no assurance that such assumptions will materialize.
For additional information please contact:
A. H. Davis
(713) 853-6941
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